In Florida, an LLC or partnership can be forced to dissolve or reorganize if one partner files for bankruptcy. However, the court will work with the remaining partner to ensure that the business continues to run smoothly while the bankrupt partner works their way out...
Chapter 11
What happens after a Chapter 11 bankruptcy?
Economically difficult times can lead to dwindling liquidity, potential covenant breaches and near-term maturities. Business managers may consider reorganization under chapter 11 bankruptcy over termination under chapter 7 bankruptcy. Chapter 11 bankruptcy has a few...
The role of a trustee in Chapter 7 and Chapter 13 bankruptcy cases
Almost every consumer bankruptcy case has a bankruptcy trustee or an administrator with different roles and obligations. The court usually appoints the trustee, who plays a significant role in overseeing the debtor's bankruptcy estate in a bankruptcy case. According...
What are the benefits of filing for Chapter 11 bankruptcy?
When a business files for bankruptcy, it can seem like a mark of failure. The word itself carries a negative connotation, but bankruptcy is simply a legal filing, often made by businesses with a solid plan in place. Chapter 11 bankruptcy in particular is designed to...
Understanding the basics of chapter 11 bankruptcy for your business
In the midst of financial difficulties as a business owner, you may be weighing your options for bankruptcy. Having a general understanding of how different types of bankruptcy work can better inform your decisions on the future of your company. Here are some main...
What happens to your utility bills when you file Chapter 11?
It’s no secret that energy costs are skyrocketing. Your business is in a slump, but the balance on the utility bills just keeps getting higher. As it gets clearer that you’re probably not going to be able to keep your business going unless you file for a Chapter 11...
Can a small business use Chapter 11 bankruptcy?
When you think of a business that is restructuring for a better financial outcome, do you imagine a large corporation? Maybe you think about a business with 500 employees or a massive factory that produces many of the products people use today. While Chapter 11...
Chapter 11 bankruptcy and cutting labor costs
When your business is in financial straits, filing for Chapter 11 bankruptcy is an option, especially when you do not want to cease operations. Unlike with a Chapter 7 bankruptcy that practically liquidates your business, filing for Chapter 11 gives you a chance to...
Businesses of all sizes, even governments, can need bankruptcy help
Did you know that Puerto Rico has been involved in a bankruptcy issue for nearly five years? You may not think of states or U.S. territories as places that can go bankrupt, but they can take on debt loads and may have to restructure their debts to stay functional,...
Common myths about Chapter 11 bankruptcy
Did you know that you do not have to close down your company even after declaring bankruptcy? By filing Chapter 11, you can stay afloat by restructuring the company's debts and obligations. So, while you may not have total control of the company, operations will...